#1. What is the difference between a subsidized and an unsubsidized loan?
Incorrect: You will need to fill out the FAFSA (or WASFA) by the deadline before each year of school
#2. Your lender is always your servicer (the company that handles the billing and other services on your loan)
Incorrect: for federal loans your lender is generally the Department of Education and your servicer is a different company (this may be true of private loans as well)
#3. Which of the following is true about taking out a student loan?
A is incorrect: Unlike scholarships and grants, loans have to be repaid with interest
B is incorrect: if you are offered a loan for $1,000 you could choose to only accept $700
C is CORRECT: loans should be one of the last options you consider when thinking about paying for college. If you do take out loans, you should try to take as little loan money as possible.
D is incorrect: only accept as much loan money as you need to meet your college costs
#4. If you need to take out a student loan, you should accept the federal loans that have been offered to you before looking into private loans.
Incorrect: federal loans generally have lower interest rates, more flexibility for repayment and forgiveness, and more protections for borrowers than private loans
#5. If you want to learn more about your federal student loans, log in to studentaid.gov
Incorrect: federal loans are made by the Department of Education, their website can give you more information about federal loans you have
Results
Nicely done! It looks like you really understand this module!
If you are still a little confused, you may want to review the module.
